Paytm to become free cash flow positive by the year-end: CEO

During an earnings call with news agency PTIVijay Shekhar Sharma highlighted that the company’s growth during the quarter ending in June 2023 was primarily driven by its advancements in the domains of payments, financial services, and commerce.

“We are on our committed guidelines of becoming free cash flow positive by the year-end,” Sharma said.

Paytm CEO on RBI’s action against Paytm Payments Bank

The CEO shared an update on the Reserve Bank of India’s (RBI) bar on the onboarding of new customers by Paytm Payments Bank and said the company has submitted the compliance report with the central bank and it is currently under review. Vijay Shekhar Sharma added that the central bank has taken longer than expected to approve their request, but the company expects it soon.

In the financial year 2022, the Reserve Bank of India (RBI) issued a directive to Paytm Payments Bank (PPBL) to halt the onboarding of new customers starting from March 1, 2022.

In FY2023, the central bank took a step further by appointing an external auditor to conduct a thorough audit of PPBL’s systems. This audit aimed to assess various aspects, including IT outsourcing processes and operational risk management, with a particular focus on Know Your Customer (KYC) procedures.

On 21 October, 2022, Paytm Payments Bank received the final audit report from the RBI, which emphasized the need for continuous improvement in the strengthening of IT outsourcing processes and operational risk management, specifically regarding KYC and related practices at the bank.

(With inputs from PTI)

Updated: 22 Jul 2023, 02:54 PM IST